President Bola Tinubu has approved a new executive order aimed at bringing more investment into Nigeria’s deep offshore oil and gas industry.
The Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Order, 2026 is designed to help restart major offshore projects that have been delayed for years. The Federal Government says the new framework could unlock up to $50 billion in investment.
One of the biggest projects expected to benefit is the Bonga South West development. The project requires an estimated $10 billion investment and has been waiting for a final investment decision. The new policy is meant to make it easier for companies to decide whether to put billions of dollars into large offshore projects.
According to the presidency, the new system will replace the old method of negotiating incentives separately for each project.
Instead, companies that meet the required conditions will have access to clear rules and tax incentives. The government believes this will give investors more confidence because they will know the rules before committing their money.
Tinubu said the policy was developed after discussions with Shell chief executive Wael Sawan. The president said he asked his team to find a solution that could help more than one company or project.
The government has also set December 31, 2029 as the deadline for existing deep offshore leases to reach Final Investment Decision and qualify for the full standard incentive.
The new order is also expected to create more work for Nigerian companies. The presidency said projects covered by the scheme will be encouraged to carry out as much work as possible in Nigeria where it is technically and commercially possible.
This could benefit Nigerian engineering companies, fabrication firms, marine businesses and other oil service providers. The government also expects the projects to create skilled jobs and strengthen local businesses.
Nigeria has large oil and gas deposits offshore, but some major developments have remained stuck for years because of their high cost and concerns about whether they would make enough money for investors. The new incentives are therefore aimed at making those projects more attractive.
The government says the reform is part of its wider effort to increase oil and gas investment, raise production and make Nigeria more competitive in the global energy market.
For Nigeria, the success of the policy could mean more investment, more oil and gas production and more jobs.
For investors, the main question now is whether the new incentives will be enough to move some of the country’s long-delayed offshore projects from plans to actual production.
